The Journal Entry to Record the Sale of an Available-For-Sale

question 17

Multiple Choice

The journal entry to record the sale of an available-for-sale investment includes a gain on sale of investment of $500. The income statement will reflect:

• A) an increase in net sales of $500.
• B) another income of $500.
• C) an extraordinary gain of $500.
• D) nothing, since the entry impacts only asset accounts.

Understand the human resource perspective as outlined by Bolman and Deal and its implications for organizational behavior.

Understand the concept of contextual engagement and its importance in fostering civic engagement.

Develop skills in gathering and utilizing community information relevant to organizational involvement.

Describe the importance of balancing coordination and control structures within an organization for effective management.

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Definitions:

Unprofitable Segment

An unprofitable segment is a division or part of a business that consistently generates losses instead of profits.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue.

Fixed Costs

Expenses that do not change in proportion to the level of goods or services produced within a certain period.

Hurdle Rate

The minimum rate of return on a project or investment required by a manager or investor.